Charter Communications Is A Strong Buy



  • Charter Communications has delivered a lot of alpha to investors since it emerged from bankruptcy back in 2009.
  • Charter Communications is up 37.5% YTD.
  • Charter has been hitting new all-time recently.
  • Charter is currently one of my top picks amongst Large-Cap Growth stocks.
  • I find thestock to still be a terrific value.
  • I do much more than just articles at Best Stocks Now! Premium: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

The Story

With its brand Spectrum, Charter delivers its services to 26 million customers in 41 states. It is the second-largest cable operator in the United States behind Comcast (CMCSA). Headquartered in Stamford CT. the company currently has a market cap of about $90b.

Charter increased in size significantly back on May 18, 2016, when it completed its acquisition of Time Warner Cable. It is now ranked at number 74 overall in size amongst the Fortune 500 list.

Data from Best Stocks Now Database

The turnaround in earnings has been very good under the current leadership of CEO, Thomas Rutledge. Rutledge served as an executive at Cablevision for many years before being brought on board by Paul Allen at Charter.

Data from MarketSmith

As you can see from the graph shown above, the company was losing $3.05 per share back in 2012. At the time the stock was trading between $56 and $83 per share.

Earnings finally went positive in 2016 at $0.95 per share. By this time, the stock had risen to $294 per share. In 2020 the company is expected to make a record $12.73 in earnings. The stock is now trading around $420 per share. This has been quite a turnaround.

If there is one thing that I have learned during my 22 years as a professional money manager and research analyst, it is this: Stocks and Indexes follow earnings. The correlation between earnings growth and stock price appreciation has been quite obvious with this stock.

The future of earnings will obviously play a big role in the future direction of this stock. We will take a look at those analyst’s expectation in a bit.


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